CFTC orders Kalshi to defy Michigan court's trade cancellation mandate

The U.S. Commodity Futures Trading Commission (CFTC) has ordered prediction market Kalshi not to cancel trades as previously mandated by a Michigan state court, which had banned the platform's sports betting activities last month. According to CoinDesk, the state court ordered Kalshi to halt online sports betting in June. Subsequently, on July 2, Kalshi filed an emergency request with the CFTC after the court directed it to void, cancel, and refund trades for some users in Michigan. CFTC Chairman Michael Selig stated that the agency will not allow state governments or courts to pressure CFTC-registered firms into violating the Commodity Exchange Act and CFTC regulations, adding that states do not have the right to interfere. He emphasized that canceling executed trades is an unprecedented measure that risks a chain reaction across the market, potentially creating uncertainty and undermining public trust.